Competitive Strategy for Technological - Legal and Environmental

Question: Discuss about theCompetitive Strategy for Technological, Legal and Environmental. Answer: Introduction The essay will be highlighting the tools that help in providing competitive strategy to the organizations, which will allow them to function in a proper manner so that the external and the internal threats can be identified properly. The organizations need to have a clear understanding of the threats and the opportunities that are there in the market that may affect the company in an internal or an external manner. The essay will be highlighting the PESTLE analysis and the Five Forces analysis that affect the company in an external manner and SWOT analysis that helps in evaluating the internal operations of the company by examining the strengths that are present. These competitive strategy tools will help in providing Fonterra a competitive advantage in the market so that they can gain a better market share and increase the attractiveness among the customers. PESTLE analysis This is an important tool, as it helps in taking in to consideration the external environment under which the organization is performing so that it can help in providing a clear idea before they are ready to launch a new product within the market so that it can be successful. The analysis is an abbreviation that stands for Political, Economic, Social, Technological, Legal and Environmental (Kolios and Read 2013). The political factors will help Fonterra in deciding the regulatory frameworks that will help them in offering the products in the market by abiding to the rules and regulations lay down in the country. The economic factors will help the organization in getting a better knowledge of the performance of the country with respect to the economy so that the company can be able to increase its chances of profits. The social factors will help Fonterra in indentifying the society in which they are operating so that so that they can take in to account the needs and preferences of the customers (Shaw 2015). The technological factors will enable Fonterra in getting a better understanding of the new technologies that are available in the market so that it can result in increasing the production within the organization. This will allow the company in gaining a competitive advantage in the market as well. The legal factors will help Fonterra in adhering to the safety rules and regulations that are present so that they can work in an ethical manner (Baldwin et al. 2014). The environmental factors allow the company in highlighting the surrounding environment where they are carrying out with the operations. It will also enable them in understanding the natural forces that may destroy the production (Yadavalli and Heggers 2013). Five Forces analysis This competitive strategy will help Fonterra in evaluating the position and the competitive strength that they have within the dairy industry. The organizational strength can be determined, which will help in providing the actual position of the organization in the chosen markets so that the ways can be identified that will help in increasing the profits of the company. The power of the supplier has to be determined by Fonterra so that it can help them in analyzing the impact that the suppliers can create within the industry (Spicka 2013). It will also enable the organization in analyzing the cost of switching to the new company. The power of the buyers also needs to be taken in to account by the company, as they play an important role in the reduction of prices within the market. It will also enable the organization in evaluating the willingness of the customers to pay for the products (Noble 2017). The rivalry among the competitors will enable Fonterra in understanding the abilities that the competitors will have in influencing the product within the market. Most of the competitors in the dairy industry provide the products that are similar to Fonterra, which results in decreasing the attractiveness of the product in the local market (Yadavalli and Geggers 2013). The threat that comes from the substitutes needs to be evaluated so that Fonterra can understand the ability of the customers in switching over to a new product when they try to increase the price of the products in the market. The new companies that are gaining entry in the market needs to be analyzed by Fonterra so that it can help in understanding the profitability ration that the company can likely achieve when the new companies will operate in the market (Raven, Cocks and Hayes 2014). SWOT analysis This analysis will help Fonterra in analyzing the strengths and the weakness so that they can overcome the weakness based on the opportunities that are provided within the market. This competitive strategy tool will help in analyzing the internal environment of the company so that they can maximize the level of efficiency within the company. The strengths of the company will help in evaluating the core competencies that are present so that the quality and the quantity of the production can be maintained, which will provide them with a competitive advantage (Ingaldi and Skurkova 2014). The identification of the weaknesses of the company is mandatory for Fonterra, as it has to be improved that will provide the competitive to achieve the economies of scale in a better manner. It will also provide the organization an opportunity to evaluate the weakness so that they can take a better step and analyze the strategies that are present within the organization (Seifu and Doluschitz 2014). The opportunities have to be identified by Fonterra so that it can help them in improving their business in an efficient manner. This would result in increasing their level of profits so that they can be profitable in the market. Fonterra needs to evaluate the options that are present to them as opportunities so that they can help in increasing their volume of sales in the market. It will also result in identifying the loopholes that has not been capitalized so that it can help in increasing the goodwill of the company in the market (Passetti et al. 2016). The threats need to be analyzed in a proper manner by the company so that it can help in understanding the market dynamics that are present in the market. This will allow the company in eliminating the threats that are present in the market so that the company can function in an efficient manner. The managers of Fonterra needs to have a better insight regarding the strengths and weaknesses of the organization that are present inter nally so that they can identify the threats and the opportunities and operate in a proper manner (Seifu and Doluschitz 2014). Conclusion It can therefore be concluded that the tools that are present in analyzing the competitive strategy of the company will result in protecting the internal as well as the external environment in an efficient manner. It will help the managers of Fonterra in understanding then position of the company within the dairy industry as well as in the overall Australian market. It will also allow Fonterra in analyzing the risks and identify the opportunities that are present in the market so that they can be competitive and increase the attractiveness of the products in the market. 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